Shares of Nanya Technology declined 4% on Friday, closing at T$264 and marking a fifth consecutive session of losses. The drop occurred as investors in Taiwan scaled back positions ahead of the extended Lunar New Year holiday, contributing to broader market softness.
Market and Sector Context
The benchmark TAIEX index closed down 18.35 points at 31,782.92. While Nanya reported a significant 27.4% month-over-month sales increase for January, reaching NT$15.31 billion, memory chip stocks faced headwinds from tightening global supply and escalating component costs. Industry figures, including Apple's Tim Cook, have recently highlighted steep price increases for memory chips.
Holiday Schedule and Immediate Outlook
Trading on the Taiwan Stock Exchange will pause after the session on February 11. Markets will remain closed through February 20, with activity resuming on February 23. This extended break often prompts portfolio adjustments, potentially amplifying price movements in the final sessions before the halt.
Other Taiwanese memory firms, such as Winbond Electronics, also saw declines, with its stock down 4.59%. Winbond's upcoming fourth-quarter results, due on February 9, may provide further insight into sector pricing and demand dynamics.
Attention now turns to how Nanya and its peers perform in the final trading days before the holiday. Post-break, the market's reopening gap will likely reflect developments in U.S. technology shares and any new information on memory chip pricing trends during the closure.
